This study employs a sample of covered transactions filed with the Committee on Foreign Investment in the United States(CFIUS)of cross-border mergers and acquisitions targeting American companies based on publicly ava...This study employs a sample of covered transactions filed with the Committee on Foreign Investment in the United States(CFIUS)of cross-border mergers and acquisitions targeting American companies based on publicly available news reports and announcements to examine the heterogeneity hypothesis in the CFIUS review process.A comparative analysis of case studies and an empirical analysis of logit regressions are performed.We also explore how CFIUS reviews may have an impact on corporations'future mergers and acquisitions decisions in a panel data model setting.The results show that both unfair treatment in CFIUS review and the deterrent effect of CFIUS interventions have contributed to the recent sharp decline in China s direct investment in the US.展开更多
This paper critically reviews Chinese companies' foreign direct investment practices of recent years. Using case studies involving overseas Greenfield as well as merger and acquisition(M&A) of Chinese enterpri...This paper critically reviews Chinese companies' foreign direct investment practices of recent years. Using case studies involving overseas Greenfield as well as merger and acquisition(M&A) of Chinese enterprises, we aim to draw lessons from these experiences. However, because of increasing importance of outbound acquisitions by Chinese companies, this paper focuses on Chinese M&A activities. After presenting the theoretical discussions of post-acquisition organizational integration, this paper identifies factors that have contributed to less than expected performances of Chinese foreign investments. Three main factors are identified as the plausible causes of the less than satisfactory outcomes: inadequate due diligence, not considering political and country risks, and cultural differences. In all cases, inexperience of Chinese enterprises in foreign direct investment, either in Greenfield form or M&A, has attributed to the problems. Therefore, summing the experiences of the Chinese enterprises that have foreign direct investment is essential for those Chinese investors that intend to invest overseas. Conduct of meaningful, in-depth due diligence before serious negotiations for investment or acquisition, inclusion of risk premium for political risk in cash flow analysis, and early post-merger integration planning are essential for avoidances of bitter outcomes many Chinese investors experienced overseas.展开更多
基金supported by the National Natural Science Foundation o f China(No.71973152)the Fundamental Research Funds for the Central Universities,Zhongnan University of Economics and Law(No.2722020JCT009).
文摘This study employs a sample of covered transactions filed with the Committee on Foreign Investment in the United States(CFIUS)of cross-border mergers and acquisitions targeting American companies based on publicly available news reports and announcements to examine the heterogeneity hypothesis in the CFIUS review process.A comparative analysis of case studies and an empirical analysis of logit regressions are performed.We also explore how CFIUS reviews may have an impact on corporations'future mergers and acquisitions decisions in a panel data model setting.The results show that both unfair treatment in CFIUS review and the deterrent effect of CFIUS interventions have contributed to the recent sharp decline in China s direct investment in the US.
文摘This paper critically reviews Chinese companies' foreign direct investment practices of recent years. Using case studies involving overseas Greenfield as well as merger and acquisition(M&A) of Chinese enterprises, we aim to draw lessons from these experiences. However, because of increasing importance of outbound acquisitions by Chinese companies, this paper focuses on Chinese M&A activities. After presenting the theoretical discussions of post-acquisition organizational integration, this paper identifies factors that have contributed to less than expected performances of Chinese foreign investments. Three main factors are identified as the plausible causes of the less than satisfactory outcomes: inadequate due diligence, not considering political and country risks, and cultural differences. In all cases, inexperience of Chinese enterprises in foreign direct investment, either in Greenfield form or M&A, has attributed to the problems. Therefore, summing the experiences of the Chinese enterprises that have foreign direct investment is essential for those Chinese investors that intend to invest overseas. Conduct of meaningful, in-depth due diligence before serious negotiations for investment or acquisition, inclusion of risk premium for political risk in cash flow analysis, and early post-merger integration planning are essential for avoidances of bitter outcomes many Chinese investors experienced overseas.
